Flagstar Financial (NYSE:FLG) Q3 2025 Earnings Call October 24, 2025 08:00 AM ET Speaker0Hello, and welcome to the Flagstar Bank NA Third Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. I would now like to turn the conference over to Sal DiMartino, Director of Investor Relations. You may begin.Speaker1Thank you, Sarah, and good morning, everyone. Welcome to Flagstar Bank NA ...

Financial Data and Key Metrics Changes - For Q2 FY 2026, gross revenue was $2.9 billion, an 8% decline year-over-year, with a 9% decline on a revenue ex-billable basis [31] - Adjusted EBITDA was $324 million, down 11% from the prior year, translating to an adjusted EBITDA margin of 11.2%, which is 40 basis points lower than the same period last year [37] - Net income was $175 million, down 55% year-over-year, with diluted earnings per share decreasing 53% to $1.42 [38] Business Line Data and Key Metrics Changes - The National Security portfolio grew by 5% year-over-year, while the Civil business revenue declined by 22% year-over-year [31][32] - The company anticipates that the National Security portfolio will grow revenue in the mid-single-digit range for the full fiscal year, while the Civil business revenue is expected to decline in the low 20% range [22][25] Market Data and Key Metrics Changes - The funded backlog was down 6% year-over-year, while total backlog reached $40 billion, up 3% year-over-year [34] - Gross bookings totaled $7.2 billion in the quarter, with a book-to-bill ratio of 1.7 times [34] Company Strategy and Development Direction - The company is focusing on three strategic areas: reducing costs through AI, doubling down on strengths in key growth areas, and leading the transition to outcome-based contracting [16][19][20] - The company aims to maximize AI capabilities and commercial technology partnerships to drive growth in the Civil business [10] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in the current results and lowered guidance across all key metrics due to a challenging procurement environment [5][14] - The company remains optimistic about medium-term growth vectors, particularly in national security, cyber, and AI [6][12][20] Other Important Information - The company announced a quarterly dividend of $0.55 per share and increased its share repurchase authorization by $500 million [41] - The company is taking significant actions to adjust its cost structure and prepare for future growth [45] Q&A Session Summary Question: What is the outlook for funding in the defense and intelligence business? - Management indicated that while there is friction in the funding process, the national security business environment remains stronger, with significant wins expected to ramp up more slowly than historical levels [51][52] Question: What assumptions are baked into the guidance for the federal civilian business? - Management stated that they do not anticipate further cuts and expect a competitive procurement environment with pricing pressures [58][60] Question: How does the company view the profitability profile of the Civil and National Security portfolios? - Management confirmed that the Civil portfolio has higher margins due to a larger share of fixed-price contracts, while the National Security portfolio operates at lower margins [69] Question: What is the company's long-term business model outlook? - Management emphasized the importance of flexibility in operations and the need to adapt to changing market conditions, particularly in technology integration and outcome-based models [72][73]

Financial Data and Key Metrics Changes - The adjusted net loss narrowed to $0.07 per diluted share, a significant improvement compared to the previous quarter [3][16] - The net interest margin (NIM) expanded for the third consecutive quarter, increasing by 10 basis points to 1.91% [4][18] - Operating expenses decreased by approximately $800 million on an annualized basis compared to the previous year [4][18] - Criticized and classified assets declined by $600 million or 5% quarter-over-quarter and by $2.8 billion or 20% year-to-date [4][24] Business Line Data and Key Metrics Changes - The Commercial and Industrial (C&I) business originated $1.7 billion in new loan outstandings, with net loan growth of $448 million in the C&I portfolio [4][15] - Multifamily and Community Reinvestment Act (CRA) payoffs totaled $1.3 billion, continuing a trend of exceeding forecasts [4][14] - The provision for loan losses decreased by 41%, while net charge-offs declined by 38% [5][15] Market Data and Key Metrics Changes - The total Commercial Real Estate (CRE) balances have declined by $9.5 billion or 20% since year-end 2023, aiding in the diversification of the loan portfolio [21] - The CRE concentration ratio decreased by 95 basis points to 407% since year-end 2023 [21] Company Strategy and Development Direction - The company is focused on transforming into a top-performing regional bank, emphasizing a customer-centric relationship-based culture [27] - The strategy includes reducing reliance on wholesale funding and enhancing liquidity, which has resulted in a significant reduction in funding costs [12][20] - The company plans to start originating new high-quality CRE loans in the fourth quarter, diversifying its portfolio geographically [15][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of profitability, citing a consistent narrowing of net losses and improved credit quality [3][5] - The company anticipates continued growth in the C&I business, with expectations of funding between $1.7 billion to $2.2 billion in C&I loans per quarter going forward [36][48] - Management noted that the balance sheet is expected to stabilize in the fourth quarter and begin to grow in 2026 [46][68] Other Important Information - The company completed a holding company reorganization, simplifying its corporate structure and reducing operating expenses by approximately $15 million [27][28] - The CET1 capital ratio stands at 12.45%, ranking among the highest among regional bank peers [19] Q&A Session Summary Question: NII guidance for the year - Management indicated that the balance sheet would likely be at its low point in Q4, with expectations for growth in 2026 and continued NIM expansion [30][31] Question: C&I production expectations - Management expects C&I production to stabilize at $1.7 billion to $2.2 billion per quarter, with plans to hire additional staff to support growth [36][41] Question: Regulatory relief from holding company elimination - The elimination of the holding company reduces regulatory burdens and streamlines examinations, freeing up resources and time [49][50] Question: Expense management and future cost savings - Management highlighted significant reductions in non-interest expenses and identified further opportunities for cost savings in FDIC expenses and vendor costs [57][60] Question: Non-interest-bearing deposit growth - Management expects non-interest-bearing deposits to grow as new C&I relationships are established and private banking efforts are enhanced [61][62] Question: Credit quality and provisioning outlook - Management anticipates a downward trend in non-performing loans and has a pipeline for significant reductions in the fourth quarter [64][66]

Financial Data and Key Metrics Changes - Pro forma adjusted EBIT for Q3 2025 was €3 billion, a 12% increase from Q2 and a 6% decrease year-on-year in U.S. dollar terms despite a 14% fall in crude oil prices [6][10] - Adjusted net income was €1.25 billion, effectively in line year-on-year, despite a $10 per barrel fall in crude price and a weaker U.S. dollar [9][10] - Cash flow from operations reflected efficient conversion of earnings into cash, with a working capital draw in Q3 [10][11] Business Line Data and Key Metrics Changes - Upstream production reached 1.76 million barrels per day, up 6% year-on-year, with a pro forma EBIT of €2.6 billion [7][9] - Transition activities reported €233 million of pro forma EBIT, with a 26% year-on-year increase [9] - GGP reported €279 million in pro forma EBIT, maintaining focus on maximizing value and optimizing the gas and LNG portfolio [8][9] Market Data and Key Metrics Changes - The company expects full-year production to be between 1.71 and 1.72 million barrels per day, a 3% underlying increase versus 2024 [11] - The LNG portfolio aims for a target of 20 million tons per annum, with projects in Mozambique, Congo, and Argentina [26][27] Company Strategy and Development Direction - The company is focused on a dual exploration strategy, enhancing its upstream capabilities while also investing in transition activities [14] - Significant progress in floating LNG technology, with Coral North and other projects reinforcing leadership in this area [4][26][77] - The company is committed to tripling biofuel production capacity by 2030, with ongoing investments in biorefineries [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage downturns and maintain growth, citing a strong underlying business performance [13][35] - The outlook for production remains positive, with expectations of continued growth driven by new projects and operational efficiencies [11][26] - Management highlighted the importance of maintaining a diversified income mix and efficient tax rate as part of the overall strategy [10][46] Other Important Information - The company announced an increase in share buyback to €1.8 billion, reflecting confidence in financial performance and a commitment to shareholder value [13][35] - The company is in advanced negotiations for a joint venture with Petronas, expected to contribute to production growth [30] Q&A Session Summary Question: Strong production figures in upstream - Management attributed the strong production figures to new startups and ramp-ups in various regions, including Norway and Angola [19] Question: Chemicals performance and future expectations - Management indicated that benefits from the shutdown of chemical plants would materialize in 2025, with significant improvements expected in 2026 [21][22] Question: Outlook for production in coming quarters - Management confirmed a strong exit rate and visibility on high-quality projects, expecting production to remain robust [26] Question: Buyback decision amidst declining oil prices - Management explained that the decision to increase buyback was based on strong operational performance and confidence in managing future downturns [35] Question: Update on Namibia gas project - Management reported successful drilling results in Namibia, indicating potential for future development [36] Question: Impact of legislation on Argentine LNG project - Management stated that the RIGI legislation is an enabler for LNG exports, but investments in Argentina began prior to this legislation [40] Question: Biofuels market outlook and SAF demand - Management highlighted that demand for sustainable aviation fuel (SAF) is expected to grow due to regulatory mandates and market dynamics [58][61] Question: Working capital movement and future expectations - Management anticipated limited drawdown in working capital for Q4, with a positive outlook for the full year [90]

NatWest Group (NYSE:NWG) Q3 2025 Earnings Call October 24, 2025 04:00 AM ET Company ParticipantsPaul Thwaite - CEOGuy Stebbings - Executive Director of Banks Equity ResearchKatie Murray - CFOConference Call ParticipantsSheel Shah - Senior AnalystAndrew Coombs - Managing Director and Senior Equity Research AnalystJonathan Pierce - Equity AnalystArman Rakhar - AnalystRobert Noble - Banks AnalystChris Kent - AnalystEd Firth - Managing Director and Senior Equity Research AnalystBenjamin Cavan Roberts - AnalystA ...

NatWest Group (NYSE:NWG) Q3 2025 Earnings Call October 24, 2025 04:00 AM ET Company ParticipantsPaul Thwaite - CEOGuy Stebbings - Executive Director of Banks Equity ResearchKatie Murray - CFOConference Call ParticipantsSheel Shah - Senior AnalystAndrew Coombs - Managing Director and Senior Equity Research AnalystJonathan Pierce - Equity AnalystArman Rakhar - AnalystRobert Noble - Banks AnalystChris Kent - AnalystEd Firth - Managing Director and Senior Equity Research AnalystBenjamin Cavan Roberts - AnalystA ...

NatWest Group (NYSE:NWG) Q3 2025 Earnings Call October 24, 2025 04:00 AM ET Speaker0Good morning, and welcome to the NatWest Group Q3 Results twenty twenty five Management Presentation. Today's presentation will be hosted by CEO, Paul Thwaite and CFO, Katie Murray. After the presentation, we will take questions.Speaker1Good morning, and thanks for joining us today. I'll start with a short introduction before I hand over to Katie to take you through the numbers. We have delivered another strong quarter as we ...

NatWest Group (NYSE:NWG) Q3 2025 Earnings Call October 24, 2025 04:00 AM ET Speaker0Good morning and welcome to the NatWest Group Q3 Results 2025 Management Presentation. Today's presentation will be hosted by CEO Paul Thwaite and CFO Katie Murray. After the presentation, we will take questions.Good morning and thanks for joining us today. I'll start with a short introduction before I hand over to Katie to take you through the numbers. We have delivered another strong quarter as we continue to execute on ou ...

Financial Data and Key Metrics Changes - Newmont generated $3.3 billion in adjusted EBITDA and adjusted net income of $1.71 per share for the third quarter, a 20% increase from the second quarter and more than double last year's result [14] - The company achieved record third-quarter cash flow of $1.6 billion, contributing to an all-time annual record of $4.5 billion with one quarter remaining [8][15] - The balance sheet was strengthened, ending the quarter in a near-zero debt position after retiring $2 billion of debt [9][10] Business Line Data and Key Metrics Changes - Production was largely in line with the second quarter, driven by higher grades and improved productivity at Subika Underground, while Peñasquito delivered a lower proportion of gold [11][12] - The company completed mining at the Subika Open Pit and shifted activities to lower grades from the Awonsu Open Pit [11] - At Ahafo, the construction of the engineered wall of the Phase 14A layback was completed, preparing for future higher grades [12] Market Data and Key Metrics Changes - Newmont received nearly $640 million in net cash proceeds from equity and asset sales since the start of the third quarter, marking the successful completion of its asset divestment program [8] - Moody's upgraded Newmont's issuer credit rating to A3 with a stable outlook, reflecting the improved credit profile and financial management [10] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet, funding cash-generative capital projects, and returning capital to shareholders [15][22] - Newmont is committed to a disciplined capital allocation strategy, prioritizing investments in its own assets and share buybacks [49] - The restructuring includes a decentralized organizational structure to enhance accountability and decision-making at operating sites [9][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year production guidance and highlighted the importance of operational performance, safety, cost, and productivity [16][21] - The company anticipates a reduction in absolute cost guidance for G&A, exploration, and advanced projects by approximately 15% [17] - Future production is expected to be within the same guidance range for 2026, but towards the lower end due to planned mine sequencing [20][71] Other Important Information - The company declared commercial production at its new mine a half mile north, which is expected to add profitable gold production over an initial 13 years [10][24] - Newmont has returned $823 million to shareholders since the last earnings call through dividends and share repurchases [10][22] Q&A Session Summary Question: Capital allocation and balance sheet management - Management remains committed to a well-defined capital allocation framework and will review returns to shareholders quarterly [30] Question: Project pipeline updates - The proposal for Red Chris remains on track for mid-next year, and all longer-dated projects will need to earn their rights for capital allocation [32] Question: Autonomy and restructuring impact - The restructuring has led to a strong leadership team with key appointments being made, focusing on operations and projects [36] Question: Production guidance for 2026 - Production for managed operations is expected to be on the lower end of the guidance range, around 4.2 million ounces [71] Question: Cost inflation and underlying cost pressures - Normal increases in labor and consumables are expected, but cost-saving initiatives are helping to offset higher royalties and taxes [72]

Financial Data and Key Metrics Changes - Newmont generated $3.3 billion in adjusted EBITDA and adjusted net income of $1.71 per share for the third quarter, a 20% increase from the second quarter and more than double last year's result [14] - The company achieved record third-quarter cash flow of $1.6 billion, contributing to an all-time annual record of $4.5 billion with one quarter remaining [8][15] - The balance sheet was strengthened, ending the quarter in a near-zero debt position after retiring $2 billion of debt [9][10] Business Line Data and Key Metrics Changes - Production was largely in line with the second quarter, driven by higher grades and improved productivity at Subika Underground, while Peñasquito delivered a lower proportion of gold [11][12] - The company completed mining at the Subika Open Pit and shifted activities to lower grades from the Awonsu Open Pit [11] - At Ahafo, the construction of the engineered wall of the Phase 14A layback was completed, preparing for future higher grades [12] Market Data and Key Metrics Changes - Newmont received nearly $640 million in net cash proceeds from equity and asset sales since the start of the third quarter, marking the successful completion of its asset divestment program [8] - Moody's upgraded Newmont's issuer credit rating to A3 with a stable outlook, reflecting the improved credit profile and financial management [10] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet, funding cash-generative capital projects, and returning capital to shareholders [15][22] - Newmont is committed to a disciplined capital allocation strategy, prioritizing investments in its own assets and share buybacks [49] - The restructuring includes a decentralized organizational structure to enhance accountability and decision-making at operating sites [9][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year production guidance and highlighted the importance of operational performance, safety, cost, and productivity [16][21] - The company anticipates a reduction in absolute cost guidance for G&A, exploration, and advanced projects by approximately 15% [17] - Future production is expected to be within the same guidance range for 2026, but towards the lower end due to planned mine sequencing [19][71] Other Important Information - The company declared commercial production at its new mine a half mile north, which is expected to add profitable gold production over an initial 13 years [10][24] - Newmont has returned $823 million to shareholders since the last earnings call through dividends and share repurchases [10][22] Q&A Session Summary Question: Capital allocation and balance sheet management - Management remains committed to a well-defined capital allocation framework and will review returns to shareholders quarterly [30] Question: Project pipeline updates - The proposal for Red Chris remains on track for mid-next year, and all longer-dated projects will need to earn their rights for capital allocation [32] Question: Team structure and appointments - The executive leadership team is strong, with key appointments being made, including a focus on filling the CFO position [36] Question: Ramp-up of new mine - The ramp-up of the new mine is on schedule, with commercial production expected to be declared soon [38] Question: Reserve pricing and growth expectations - The reserve and resource review is ongoing, with outcomes expected in February next year [42] Question: Cost inflation and operational efficiencies - Normal increases in labor and consumables are expected, but cost-saving initiatives are helping to offset higher royalties and taxes [72] Question: Capital allocation for growth assets - The focus remains on internal investments and share buybacks, with any acquisitions being value accretive [49] Question: Exploration and advanced projects budget - The reduction in exploration and advanced projects budget is due to rationalization and strategic capital allocation decisions [92]